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Updated over 4 years ago,

User Stats

142
Posts
52
Votes
Tyler Mutch
  • Contractor
  • Milwaukee, WI
52
Votes |
142
Posts

Debt to income ratio is capped. What to do?

Tyler Mutch
  • Contractor
  • Milwaukee, WI
Posted

Hello Group, 

I am reaching out because I was able to purchase a single family rental, and a house hack duplex this year. I feel this is a pretty good step in the right direction, I'm excited! The next issue is that I bought deals without a ton of current equity, but that are great long term rentals with financing. I have been told I am currently at 60% DTI, this is because they will not count the rental income received from these rentals until two years out. I am working to find seller finance deals to work around this, but are there any other suggestions to go above and beyond.

I am actively search for a higher paying w-2 job trying to increase that income portion of this equation. I have a couple of notes out currently due in 9 months, both paying around 15%, and generating some additionally monthly cashflow. I probably will not purchase anything else before the end of the year, due to the fact I am going to build up reserves, and more for another down payment. Should I be focused on paying down one of the properties to push the 'debt' portion of the equation? I am hoping to wait about six months and then be back up and running when the notes come back. 

Thanks in advance! 

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